O'Mally Department Stores Is Considering Two Possible Expansion Plans

question 66

Multiple Choice

O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,920,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,500,000. The following information is available: The payback period for the Indiana proposal is closest to

• A)3.8 years.
• B)5.0 years.
• C)4.8 years.
• D)38.4 years.

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